Nebius Just Revealed the Biggest Problem Facing Neocloud Stocks

More than three years into the artificial intelligence (AI) race, demand for computing power continues to outstrip companies' ability to supply it. Neocloud companies like Nebius Group (NASDAQ: NBIS) and CoreWeave aim to capitalize on that supply/demand imbalance by building new AI-focused data centers to help meet those capacity needs. In fact, some of their largest customers are hyperscalers such as Microsoft and Meta Platforms.Nebius has pushed to differentiate itself from smaller neocloud businesses with its own server design optimized for cooling efficiency and power usage, its own software, and complete service management. That's pushing it closer to the level of Microsoft's Azure platform than the low-level infrastructure-as-a-service offering of the average neocloud company.Recently, Nebius started offering its data center stack of design and software management as a stand-alone product. It's asking businesses to front the cash to build a data center and pay for the infrastructure, and the company will take care of the rest. But the new model exposes a huge problem facing Nebius and other neocloud companies.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool